Minister Duguid announces federal investments to establish leading-edge aircraft engine testing facility in Calgary

Government of Canada funding of $180 million enables the Calgary International Airport to play a vital role in the transition to newer, lower emission aircraft engines

CALGARY, AB, Feb. 13, 2025 /CNW/ - Aviation in Canada is a key driver of economic growth, connecting Canadians and goods across the country and with the rest of the world. The Government of Canada is making strategic investments that enable this vital industry to develop and adopt clean technologies, leading to lower emissions and supporting the competitiveness of small- and medium-sized firms.

Minister Duguid announces federal investments to establish leading-edge aircraft engine testing facility in Calgary (CNW Group/Government of Canada)

Today, the Honourable Terry Duguid, Minister of Sport and Minister responsible for Prairies Economic Development Canada (PrairiesCan), announced federal investments totaling $180 million for the Calgary Airport Authority to construct, fit out and equip a new 150,000 square foot aircraft engine maintenance and test facility at the Calgary International Airport (YYC). This facility will allow for the onshoring of maintenance and testing of engines used in the commercial aviation sector while also facilitating a transition to lower emission engines and sustainable aviation fuels.

These investments include $172 million in financing from the Canada Infrastructure Bank (CIB) and $8 million in non-repayable contributions from PrairiesCan through the Community Economic Development and Diversification (CEDD) program. They are part of a multi-partner collaboration that includes the Province of Alberta, the City of Calgary, Calgary Economic Development, YYC Calgary International Airport, and Lufthansa Technik to advance a regional vision for a western aviation hub. The project builds on western Canada's established strengths in engine testing and aviation technologies.

A facility unique to Canada

The new facility will be unique to Canada in its capacity to accommodate the next generation of narrow body, lower emission jet engines, which will help position Canadian airlines to meet Canada's commitment to net-zero emissions. In addition to better environmental outcomes, the facility will provide engine maintenance and repair services to help airlines improve cost competitiveness and reduce downtime.

The project will support approximately 160 permanent full-time jobs that are expected to be created by Lufthansa Technik at the facility by 2030 and up to 170 temporary construction jobs related to the development of the facility. Over 30 small- and medium-sized businesses operating in the aviation supply chain, such as those providing avionics maintenance and component manufacturing, will also benefit. The facility is expected to break ground in mid-2025 and be completed in 2027. The facility will serve all airlines, with WestJet as a cornerstone client for Lufthansa Technik.

Building on recent investments in aerospace and aviation

Today's investments build on recent PrairiesCan support for Alberta's aerospace and aviation industry. This includes over $4.3 million announced in November 2024 for manufacturing and commercializing new technologies, connecting small- and medium-sized firms with procurement opportunities, and creating new career paths for underrepresented groups. In October 2023, PrairiesCan announced $3 million to double Mount Royal University's pilot and flight training capacity to meet industry needs. And in June 2023, PrairiesCan also announced $4 million to establish an Aerospace Innovation Hub at the University of Calgary, as well as Canada's first remotely piloted aviation training centre for heavy-lift drones training, maintenance, and certification at the Southern Alberta Institute of Technology (SAIT).

In line with the priorities of the Government of Canada's Framework to Build a Green Prairie Economy, these investments are about collaborating more closely on local priorities and building on local strengths to seize opportunities for a prosperous and sustainable Prairie economy.

Quotes

"This new, state-of-the-art facility is a major step toward making Calgary and Alberta global leaders in aviation innovation. Our government is proud to partner with the Calgary Airport Authority, industry leaders, and all levels of government to strengthen Canada's aviation sector. We beat out strong competition to secure this opportunity, showcasing our region's innovative spirit and commitment to reducing emissions. Together, we're developing and adopting cutting-edge technologies that will boost the competitiveness of small and medium-sized businesses across the aviation supply chain."
The Honourable Terry Duguid, Minister of Sport and Minister responsible for Prairies Economic Development Canada

"This project is about showcasing Alberta's growing global reputation for innovation in aviation and clean technologies. I'm pleased that our government is making this major investment to further position the Calgary region as a leading hub for game-changing technological advancements and high-quality jobs in this key industry.
George Chahal, Member of Parliament for Calgary Skyview

"The Calgary Airport Authority is extremely appreciative of the $8 million contribution from PrairiesCan to support the growth of a new state-of-the-art aircraft engine maintenance and testing facility. This investment represents a significant step forward for the Calgary International Airport (YYC), which is overseeing the planning, construction, and deployment phases to ensure the multi-partner project is delivered to the highest standards. The Authority will continue to work tirelessly to establish Calgary as a premier aviation hub, positioning Calgary as a centre of excellence for aviation training, maintenance and engine technology."
Chris Dinsdale, President and CEO, Calgary Airport Authority

Quick facts

• By leveraging the capital and expertise of the private sector, the CIB helps public dollars go further by investing in revenue-generating infrastructure projects in the public interest.
• PrairiesCan is the federal department that supports economic growth in Alberta, Saskatchewan and Manitoba.
• CEDD aids economic development initiatives that contribute to the economic growth and diversification of communities across the Prairie provinces. Through this program, PrairiesCan enables communities to leverage their capacity and strengths to respond to economic development opportunities and adjust to changing and challenging economic circumstances.
• WestJet will become Lufthansa Technik Canada's first customer at the new engine maintenance facility, the result of a 15-year multi-billion-dollar agreement between WestJet and Lufthansa Technik Canada—the largest service contract in WestJet's nearly 30-year history.

Associated links

• Prairies Economic Development Canada (PrairiesCan)
• Community Economic Development and Diversification (CEDD) program
• The Canada Infrastructure Bank (CIB)
• The Framework to Build a Green Prairie Economy
• MP Chahal announces federal investments to grow Alberta's aerospace and aviation industry
• MP Chahal announces federal investment to expand pilot training in Calgary
• Minister Vandal announces federal investment to grow aerospace industry in Calgary

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SOURCE Government of Canada

Contacts: Erik Nosaluk, Director of Communications, Office of Minister of Sport and Minister responsible for Prairies Economic Development Canada, 613-790-0373, [email protected]; Rohit Sandhu, Communications Manager, Prairies Economic Development Canada, [email protected]